Supply Chain Management -Case assignment Essay Example | Topics and Well Written Essays - 1000 words

Supply Chain Management -Case assignment - Essay Example Hence they have decided to face changing times by offering a low cost version of their product and introducing a new target audience. TFCs key strengths are their extensive experience in the field of chassis for motor homes, their technological adaptability & advancement, quality designs, marketing knowledge and design development on time exactly as per customer preference. TFC’s management has recognized the opportunity which lies in expanding their product portfolio to low priced product to cater to price sensitive audience. Low priced items have always posed threat to high end customized item especially when the economy is receding; hence diversity in product portfolio is always a balancing act (a safe bet for survival) for the company during all times. While expanding the product portfolio TFC faced a weakness for the first time that is delay in lead time of building chassis. Commonly a chassis would have been designed, customize and made ready in less than 30 days. However due to restrained capital available they could not meet all customer demands on time while catering two product types. Main area of time lag occurred at the designing stage as identified by the team. At this scenario TFC was approached by Computer-Images a design house in another estate proposing to become an outsourced designing outlet for low end chassis line working electronically only upon specifications provided by TFC. This approach was proposed with a key to keep TFC’s focus on high end chassis (TFC’s star product) while meeting demand for both high end and low end chassis. Now TFC has two options either to accept Computer-Image’s proposal to have low end product outsourced or increase current capacity to overcome time delay in designing and remain an in-sourced organization enjoying control over time, design and delivery. De Looff (1996) uses key 6 goals in his book defining outsourcing /